M/s Manjusha Medical and Research Centre, Faizabad V. Income Tax Officer-1, Faizabad

ITA 696/LKW/2013

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 87798 (ITAT-LUCKNOW)
• Duration Of Justice: 1 year(s) 5 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-03-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 02-03-2015
• Assessment Year: 2005-2006
• Appeal Filed On: 04-10-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PUNIT KUMAR
• Assessee Lawyers: M P MISHRA; SHAILENDRA MISHRA S
• Keywords: Unexplained investment

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH A, LUCKNOW BEFORE SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI. A. K. GARODIA, ACCOUNTANT MEMBER ITA NO.696/LKW/2013 ASSESSMENT YEAR:2005-06 M/S MANJUSHA MEDICAL & RESEARCH CENTRE NEAR SBI, STATION ROAD CIVIL LINES, FAIZABAD V. INCOME TAX OFFICER-I FAIZABAD TAN/PAN:AANFM1228L (APPELLANT) (RESPONDENT) APPELLANT BY: SHRI. M. P MISHRA & SHRI. SHAILENDRA MISHRA, ADVOCATES RESPONDENT BY: SHRI. PUNIT KUMAR, D.R. DATE OF HEARING: 02 03 2015 DATE OF PRONOUNCEMENT: 13 03 2015 O R D E R PER SUNIL KUMAR YADAV: THIS APPEAL IS PREFERRED BY THE ASSESSEE AGAINST THE ORDER OF THE LD. CIT(A) RESTRICTING THE PENALTY LEVIED UNDER SECTION 271(1)(C) OF THE INCOME-TAX ACT, 1961 (HEREINAFTER CALLED IN SHORT THE ACT') ON CERTAIN ISSUES. FOR THE SAKE OF REFERENCE, THE GROUNDS RAISED IN THIS APPEAL ARE EXTRACTED HEREUNDER:- 1. UNDER HEAD PROFESSIONAL RECEIPT FOR RS.3,00,000/- IS COMPLETELY DELETED BY HONORABLE ITAT LUCKNOW, SO, THE PENALTY SHOULD BE DELETED ON THIS GROUND. 2. UNDER HEAD DISALLOWANCE MADE OUT OF VARIOUS EXPENSE FOR RS.2,73,794/- AND RS.1,28,773/- ARE PRESENTLY REMANDED, SO, THE PENALTY SHOULD BE DELETED ON THIS GROUND. 3. UNDER HEAD UNEXPLAINED INVESTMENT IN ACQUIRING FIXED ASSET FOR :- 2 -: 822,954 IS PRESENTLY REMANDED, SO, THE PENALTY SHOULD BE DELETED ON THIS GROUND. 2. DURING THE COURSE OF HEARING, THE LD. COUNSEL FOR THE ASSESSEE HAS FILED A CHART STATING THEREIN THAT THE ADDITIONS, ON WHICH PENALTY WAS LEVIED, WERE EITHER DELETED OR SET ASIDE TO THE ASSESSING OFFICER FOR RE-ADJUDICATION. THE CHART PLACED BEFORE US IS EXTRACTED HEREUNDER FOR THE SAKE OF REFERENCE:- SL. ADDITION MADE BY ITO ORDER DT. 26-11-2007 ( RS.) RELIEF BY HONBLE CIT(A) ORDER DT. 18-01-2011 ( RS.) RELIEF BY HONBLE ITAT ORDER DT. 10-09-2013 (RS.) AMOUNT FINALLY CONFIRMED ( RS.) 1. 2. 3. 4. 5. AD-HOC ADDITION IN PROFESSIONAL RECEIPT AD-HOC DISALLOWANCE REGARDING EXPENSES DEBITED IN PROFIT & LOSS A/C DISALLOWED INTEREST & REMUNERATION PAID TO PARTNERS UNEXPLAINED INVESTMENT IN FIXED ASSETS DEPOSIT IN CAPITAL A/C OF PARTNER , DR. MANJUSHAPANDEY 5,00,000 (P.B. PAGE 3) 4,02,940 (P.B. PAGE 4) 2,72,220 (P.B. PAGE 4) 8,22,954 (P.B. PAGE 4) 8,52,947 (P.B. PAGE 4) 2,00,000 (P.B.PAGE11) 1,29,140 (P.B.PAGE12) 2,72,220 (P.B.PAGE13) CONFIRMED (P.B.PAGE13) 8,52,947 (P.B.PAGE14) 3,00,000 (P.B.PAGE17 ) SET-ASIDE (RESTORED TO A.O. ( RS.2,73,794) (P.B.PAGE18 & 19 ) NOT DISPUTED BY DEPARTMENT SET-ASIDE (RESTORED TO A.O.) (P.B.PAGE19 & 20) REVENUES APPEAL DISMISSED (P.B.PAGE20 ) NIL NIL NIL NIL NIL :- 3 -: 3. THE LD. COUNSEL FOR THE ASSESSEE HAS FURTHER CONTENDED THAT IN THE LIGHT OF THESE FACTS, THE PENALTY CONFIRMED BY THE LD. CIT(A) IS NOT SUSTAINABLE. 4. THE FACTUAL ASPECTS WERE NOT DISPUTED BY THE REVENUE. 5. IN THE LIGHT OF THESE FACTS, WE ARE OF THE VIEW THAT THE PENALTY LEVIED UNDER SECTION 271(1)(C) OF THE ACT IS NOT SUSTAINABLE ON ANY OF THE ISSUE, AS THE ADDITIONS ON THOSE ISSUES WERE EITHER DELETED BY THE LD. CIT(A) OR BY THE TRIBUNAL OR THE ISSUES WERE SET ASIDE TO THE ASSESSING OFFICER FOR RE- ADJUDICATION. WE ACCORDINGLY FIND NO MERIT IN THE PENALTY CONFIRMED BY THE LD. CIT(A). WE, THEREFORE, SET ASIDE THE ORDER OF THE LD. CIT(A) AND DELETE THE PENALTY. 6. IN THE RESULT, APPEAL OF THE ASSESSEE STANDS ALLOWED. ORDER WAS PRONOUNCED IN THE OPEN COURT ON THE DATE MENTIONED ON THE CAPTIONED PAGE. SD/- SD/- [A. K. GARODIA] [SUNIL KUMAR YADAV] ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 13 TH MARCH, 2015 JJ:0203 COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT(A) 4. CIT 5. DR ASSISTANT REGISTRAR